As a commercial property landlord, making decisions around granting tenancies will be a complex and significant part of your role.
In a recent case of Gill vs Lees News Limited, the Court of Appeal addressed issues around whether a commercial landlord may oppose the grant of a new tenancy under the Landlord and Tenant Act 1954.
The tenant in this case, two news agencies, sought new tenancies and served notice under section 26 of the Act, however the landlord served notice under section 30, opposing the grant of a new tenancy, claiming tenant default or misbehaviour. The grounds for opposition under the Act were disrepair, persistent delay paying rent and other substantial breaches of the tenancy or with aspects of the tenant’s use or management of the property.
At first instance, the Court held that the tenants had persistently delayed paying their rent but this was minor and unlikely to reoccur, and at the time the s.30 notice was served, the property was in a state of disrepair, by the date of the hearing, this had been remedied. The Court held that the landlord could not establish that the tenant ought not be granted a new tenancy.
The Court of Appeal held that the Court was entitled to consider the history of the tenancy and the position at the date of the hearing. The Court held that the tenant in this instance had remedied the breaches and that they were unlikely to reoccur and therefore the threshold had not been met to oppose the new tenancy.
The case confirms that the court will take a global view of the matter and will review the conduct of all parties throughout the duration of the lease when reaching a decision. From both a tenant and a landlord perspective careful consideration must be given to the Grounds cited in objecting to the grant of a renewal tenancy. Here the discretionary grounds cited by the landlord combined with the landlords approach to managing the tenancy were not sufficient to prevent a renewal lease being granted.
At Bromleys, we understand the importance of getting things right when it comes to managing your commercial property. Our team of experts are on hand to provide comprehensive legal advice whenever you need it. Call us today on 0161 330 6821 or email bromleys@bromleys.co.uk to get the ball rolling.